Smart GridMarket Segment & Technology

Overview

David SidhuDavid Sidhu & Associates

• U.S. Electricity Sector Overview• How is Electricity Delivered – Simplified View• How is Electricity Delivered – Detailed View• Transmission & Distribution Architecture – Detailed View

• Smart Grid Market• Global Market Size for Smart Technologies 2009 - 2014

• U.S. Market Size for Smart Grid Technologies 2009 - 2014

• Global Smart Grid Market Size 2009 – 2014

• “End-to-End” Smart Grid Market Taxonomy• “End-to-End” Smart Grid Players by Market Segment

• Smart Grid Technology Overview• What is the Smart Grid• Smart Meter: AMI/HAN Interface• Smart Meter: AMI Interface• Smart Meter: AMI Network and Communications• Demand Response

Contents:

U.S. ELECTRICITY SECTOR OVERVIEW

• Annual revenues of $300 billion in the U.S.– 30% larger than the Automobile industry– 50% larger than the Telecommunications industry

• 3,273 Electrical Utilities in the U.S.– 210 are Investor Owned Utilities (IOUs)– 73% of the electrical energy customer base is served by IOUs– The Top 15 North American AMI deployments represent 41.1 million

smart meters deployed by 2015

U.S. Electricity Sector

Source: U.S. Department of Energy 2009

Co-op883

Muni2009

IOU210

Federal9

Source: EIA 2007Total U.S. Electric Utilities

• The average generating station in the U.S was built in the 1960s– The average age of substation transformer in the U.S. today is 42

years, more than its expected life span– Since 1982, growth in peak demand for electricity in the U.S. has

exceeded transmission growth by 25% every year– Demand for electricity in the U.S. has grown by 25% since 1990

U.S. Electricity Sector

Source: U.S. Department of Energy 2009

• Today’s electricity system is 99.97% reliable, yet still allows for power outages and interruptions that cost Americans at least $150 billion each year (about $500 for every man, woman and child)– In many areas of the U.S., the only way a utility knows there is an outage is when a customer

calls to report it– There were 41% more outages which affected 15% more consumers on average from 1996 to

2000 from 1991 to 1995– If the grid were just 5% more efficient, the energy savings would equate to permanently

eliminating the fuel and greenhouse gas emissions from 53 million cars

U.S. Electricity Sector

Source: U.S. Department of Energy 2009

Co-op12%

Muni15%

IOU73%

Total U.S. Electric Utility Comparisons, by Sector

Co-op5%

Muni9%

IOU47%Federal

7%

Nonutility32%

Co-op42%

Muni7%

IOU48%

Federal3%

Co-op6% Muni

6%

IOU77%

Federal11%

Customers Distribution Miles of Line

Generation Transmission Miles of LineSource: 2006 RUS/EIA data

SMART GRID MARKETOVERVIEW

8%

37%

31%

24%

Rate where your utility is today with regards to smart grid tech-nology adoption

Completely adoptedAdoption in progressPlans in place but not startedNot yest started

9Source: Microsoft, Inc. 2009

Smart Grid Landscape

$6.4

$10.0

$15.2

$37.6

$19.0

$27.4

$39.4

$85.5

2014 2009

Projected Global Smart Grid Market by Technology, 2009 and 2014(in U.S. billions)

Smart Sensors andDevices (17.9%)

IT Hardware andSoftware (21.0%)

Smart MeteringHardware andSoftware (24.3%)

Smart Grid IntegratedCommunications (22.3%)

Compound annual growth rate in parentheses

Source: Zpryme 2010

89.0% of market in2014 ($152.3 billion)

2008 2009 2014$0

$5

$10

$15

$20

$25

$30

$35

$40

Distributed energy generation and storage Sensing, measurement and controlCommunications Total

U.S. Market size for Smart Grid Technologies(U.S. billions)

Source: BCC Research 2010

2009 2010 2011 2012 2013 2014$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$69.3

$89.7

$110.1

$130.5

$151.0

$171.4 CAGR2009-2014

19.9%

Source: Zpryme

Projected Global Smart Grid Market Size, 2009 – 2014(U.S. billions)

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

$204

$265

$290

$360

$397

$807

$824

$849

$7,092

$7,232China

US

GermanyAustralia

UKFrance

Brazil

Japan

Spain

South Korea

Top Ten Smart Grid Federal Stimulus Investments by Country 2010(in U.S. billions)

Source: Zpryme 2010

Global Distribution Automation Market(US $Billions)

2012 2013 2014 2015 2016 2017 2018 2019 2020$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$5.7$7.4

$9.0$11.3

$13.5

$16.4

$20.6

$26.2

$33.9 CAGR = 25%2012 to 2020

Source: Zpryme 2012

Global Distribution Automation Market Segmentation2012 to 2020 Region % of Global Market

2012 2013 2014 2015 2016 2017 2018 2019 20200%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

9%16% 17% 20% 19% 18% 15% 12% 10%

25%24% 26% 26% 28% 29% 32% 34% 37%

15%14% 14% 14% 14% 14% 15% 15% 16%7%7% 7% 7% 7% 7% 8% 9% 10%

44% 39% 37% 34% 32% 31% 30% 29% 28%

North America

Latin & South America

Europe

Asia Pacific

ROW

Source: Zpryme 2012

Smart Grid Customer Implementation Phases

SMART GRID TECHNOLOGYOVERVIEW

What is the Smart Grid ?

Meters

Power Delivery System

Bulk Power Transmission

Power Distribution

Customer Devices

Bulk Power Generation Substa

tion

Source: Berkeley Labs

What is the Smart Grid ?

Meters

Power Delivery System

Bulk Power Transmission

Power Distribution

Customer Devices

Bulk Power Generation

Substation

Technology Alternative Generation, Storage, Sensors and Controllers

Smart Appliances

Service Providers

Generation Alternatives

SensorsSensors Sensors

Generation Alternatives Generation

Alternatives

Source: Berkeley Labs

Information Systems

What is the Smart Grid ?

Meters

Power Delivery System

Bulk Power Transmission

Power Distribution

Customer Devices

SubstationBulk Power

Generation

Price, Reliability, Event Signals, Historical Usage, Alerts, Other Information

Interval readings, voltage, outage and other information

Customer Authorized Usage and Billing Information

Technology Alternative Generation, Storage, Sensors and Controllers

Smart Appliances

Service Providers

Generation Alternatives

SensorsSensors Sensors

Generation Alternatives Generation

Alternatives

Source: Berkeley Labs

1. Bulk Power 2. Distribution 3. Load

Utility Customer

What is the Smart Grid ?

Meters

Power Delivery System

Bulk Power Transmission

Power Distribution

Customer Devices

Substation

Information Systems

Bulk Power Generation

Price, Reliability, Event Signals, Historical Usage, Alerts, Other Information

Interval readings, volatage, outage and other information

Customer Authorized Usage and Billing Information

Technology Alternative Generation, Storage, Sensors, and Controllers

Smart Appliances

Service Providers

Generation Alternatives

Sensors

Sensors

Sensors

Generation Alternatives Generation

Alternatives

Source: Berkeley Labs

• control signals• usage data• message• time sync• meter upgrade

• interval usage• acknowledgment• device on/off

status• outage status

Any gateway (protocol xfr)

• Special box• Internet modem• Router• Media PC• Security panel

HAN Protocols³

HAN access using expansion port

Broadband TV, music, security, home

automation

2-Way

Bluetooth

FlexNet

HomePlug

LonWorks

6LoWPAN

WiFi

ZigBee

ZWave

RDS

Insteon

RDS

?

Gateway2-Way

Utility Owned

Private Fixed NetworksWAN/LAN

1. e.g., 802.11b, proven mesh LAN protocol, etc.

2. To be determined3. Up to 45 active protocols worldwide

Smart Meter• AMI• Service Switch Remote

Connect/Disconnect• HAN Gateway

HAN Communication Options

RF–TX1

PLC–TX2

Metering: Smart Meter AMI HAN InterfaceConsumer Owned

Third-Party Provider

2-W

ay

RDS/FM or pager

broadcast

Utility Back Office

Enhanced MDM

CIS

Enhanced Billing

Utility Control Center

Data Out

Price, Reliability, Control Signals

Data In

Energy Control Signals

Source: Berkeley Labs

• interval usage

• outage status• usage data

• time sync• meter

upgrade

Utility Owned

Private Fixed NetworksWAN/LAN

1. e.g., 802.11b, proven mesh LAN protocol, etc.

2. To be determined3. Up to 45 active protocols worldwide

Advanced MeterRemote Service Switch

Connect/Disconnect [optional]

RF–TX1

PLC–TX2

Utility Back Office

Standard MDM

CIS

Billing

Consumer Owned

Metering: Advanced Meter Interface

Any gateway (protocol xfr)

• Special box• Internet modem• Router• Media PC• Security panel

HAN Protocols³

HAN access using expansion port

2-Way

Bluetooth

FlexNet

HomePlug

LonWorks

6LoWPAN

WiFi

ZigBee

ZWave

RDS

Insteon

RDS

?

Gateway

2-Way

Broadband TV, music, security, home

automation, energy management

Data Out

Data In

RDS/FM or pager

broadcast

Utility Control Center

Third-Party Provider

2-W

ay

RDS/FM , ZigBee

broadcast

1-W

ay

Third-Party Provider

RDS/FM , ZigBee

broadcast

1-W

ay

RDS/FM , ZigBee

broadcast

1-W

ay

Utility Provider

Price, Reliability, Control Signals

Data In

Source: Berkeley Labs

Metering: AMI Networking and Communications

Source: Cap Gemini

1 2 3 4 5 6

Under conventionally defined utility demand response programs, customers can participate in only one option at a time.

Demand Response

Source: Berkeley Labs

1 2

Customers subject to a dynamic rate, with the capability to receive automated price, reliability and event signals can participate in multiple options simultaneously, increasing the value and cost effectiveness for both the customer and utility.

Demand Response

Source: Berkeley Labs

Flat -Tiered Time of Use Critical Peak Pricing Real Time Pricing

1 2

A B C D E F

Dynamic PricingStatic Pricing

System and Customer

Capability to RespondMetering and

Communication Needs

Rate Design

Demand Response

Source: Berkeley Labs

KXJZ

Customer

Customer Group

Commercial and Industrial Customers

Residential – Small Commercial Customers

Demand Response: Automated DR

Source: Berkeley Labs

$300 $200 $100 $0

Programmable Communicating Thermostat 1999

Programmable Communicating

Thermostat

Programmable Communicating

Thermostat

CEC PCT Cost Effectiveness Benchmark

Conventional Air Conditioner Control Switch mid 1970’s

Commercially Available

CEC PCT First ReleaseCommercially Available

2009

PCD Embedded Controls

Projected 2009

Demand Response Equipment Evolution Switches to thermostats Thermostats to embedded controls Utility to customer control

Technology: Evolution to a Smart Grid

$150

Commercially Available

Source: Berkeley Labs

Questions?